Revenue of DelfinGroup increased by 46% in the first nine months of the year
Latvian fintech company DelfinGroup has continued to increase growth rates in all business segments in the first nine months of this year, which is positively reflected in the financial results. The company’s revenue in the first nine months increased by 46% compared to the same period last year, reaching 36.9 million euros. EBITDA of DelfinGroup increased to 13.1 million euros, up 41% compared to the first nine months of 2022, while profit before tax increased by 11% to 6 million euros.
Summarising the results for the third quarter of this year, the revenue of DelfinGroup increased by 38% year-on-year to 13.3 million euros, while the EBITDA of DelfinGroup increased to 4.8 million euros, up by 32% compared to the third quarter of 2022. Profit before tax increased by 12% to 2.2 million euros. The company’s loan portfolio reached a record level of 84.6 million euros.
"DelfinGroup continues its rapid course of development, which allows it to deliver high and sustainable growth every quarter. We continue to increase our performance both in lending and the sale of pre-owned goods, which is currently experiencing a strong increase in demand due to the mainstreaming of circular economy principles in society. The company’s profits increased by 12% in the third quarter, reflecting an efficient and sound business strategy driven by the improvement of business processes and the development of innovation within the company. Moreover, these results also demonstrate the ability of DelfinGroup to adapt to the changing market conditions, ensuring the sustainable development of the company in the future," explains Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup.
In total, in the first nine months of this year, sales of pre-owned, slightly used and new goods reached 10.8 million euros, a 32% increase compared to the same period last year. D. Ādmīdiņš adds that, strengthening the history and traditions of pawnshops in Latvia, the new premises of the 200-year-old Riga City Pawnshop at Audēju iela 6 were opened in the third quarter, moving to modern premises while providing a wider range of goods, including historical items, exclusive jewellery and precious metals, which are not available anywhere else.
Loan issuance in the first nine months of the year reached 69.2 million euros, an increase of 20% compared to the same period last year. A new version of the Banknote mobile app has also been launched, significantly improving the user experience, for example by providing the easier and faster processing of new applications, contract review and other user-friendly features that make the app easier to use on a daily basis.
Continuing to ensure a diversified funding structure for the company, DelfinGroup successfully closed a bond issue of 15 million euros, arranged by Signet Bank. Since 3 October, the bonds have been listed on First North alternative market of Nasdaq Riga. "This issue is a testament to investors’ confidence in the company, as the planned funds were raised within one month – faster than we had planned. By refinancing existing liabilities and issuing new bonds, the company has secured its long-term financial stability and future prospects, while gaining a lot of confidence from investors. I would like to mention that on 2 November we registered another private placement of new unsecured bond issue of 15 million euros to refinance an existing bond of 10 million euros that matures in November this year. The coupon rate of the new bonds is 9% + 3M EURIBOR with a maturity of 3 years," comments D. Ādmīdiņš.
The company also continues to pay regular quarterly dividends, which is a strategic step to provide shareholders with stable and regular income and a high return on investment. The Management Board plans to offer to pay out up to 50% of the company’s quarterly profits again this quarter, which demonstrates the company's ability to effectively channel its profits to shareholders.
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About AS DelfinGroup
DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.
For further information, please contact:
Aldis Umblejs,
DelfinGroup Chief Financial Officer
Phone: +371 26189988
E-mail: IR@delfingroup.lv
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